Social insurance is a mandatory, non-profit social security system established by law in China. It is administered by the labor and social security departments.
There are five types of social insurance in China: old-age, medical, unemployment, work-related injury and child-bearing. Among these, the premiums for old-age, medical and unemployment insurance are jointly contributed by the enterprise and the individual, whereas work-related injury and child-bearing insurance premiums are the sole responsibility of the enterprise.
Social insurance responsibility
All enterprises must register with the local social insurance institution, participate in social insurance schemes and pay social insurance premiums on a monthly basis. The portion of premium payable by individual workers will be withheld and deducted from their salary and paid to the relevant authorities by the enterprises.
If any changes in the social insurance registration details occur, due amendment must be made to update the record. In the event an enterprise ceases to be responsible for paying social insurance premiums because it has been dissolved, terminated, merged or gone bankrupt, it should promptly cancel its social insurance registration.
Reporting and Payment of Social insurance
An enterprise must submit its social insurance report, detailed report on social insurance premiums withheld and deducted from its employees, and other relevant information to the local social insurance institution before the 5th day of each month. The institution concerned will check and approve the report within two days. Upon receipt of the approved report, the enterprise should make full payment of social insurance through its bank or by cheque or cash within three days.
Social insurance premiums